Module 2: Market Orientation
•No competition - single supplier of product
•Oligopolistic competition - few large suppliers (detergent or aircraft industry)
o in industries that require very large investments in equipment,
technology and/or distribution (encourages mergers and acquisitions)
ocompete on price, product features, advertising and sales promotion.
•Monopolistic competition –many suppliers offering a variety of products, each
of which has a small, loyal market share (salad dressings, beauty salons,
oLots of product/service differentiation b/ rivals & price competition.
•Perfect competition – when many suppliers sell essentially the same product
oSupply and demand will control the price
oSuccess = Low cost production of a quality product and efficient
oType of market = type of company resources and company growth
ogeneral competition comes from products that satisfy a core benefit
•emphasis needs to be on the commercializing and diffusing of new innovation
into the market
•Evolution of tech revolutionalize market
•See threat = see in new competition’s processes = need to be a good intuitive
process thinker and observer
•focus on a profitable business development opportunity using a new
technology that delivers more in benefits than the current technology.
• have to be a visionary
•indicators of a likely change in future sales, profits, and competitiveness:
oChanging brand mind-share: customer preferences often
foreshadows a change in market sales share.
oChanging brand voice-share: The changing share of advertising
dollars the brand has of the total dollars spent on advertising in the
oChanging research and development (R&D) share: long-term
indicator of new product innovation and thus market share, important
measure of future competitiveness in many high technology markets.
•five forces that shape competition:
o(1) current competitors,
o(2) the threat of new entrants,
o(3) the threat of new substitutes,
o(4) the bargaining power of distributors (or business-to-business
o(5) the bargaining power of suppliers - power reduces the profitability
of transactions with them
Auditing current competitors